Uttar Pradesh government hikes VAT on cigarettes, other tobacco products

Cigarette smoking and consumption of other tobacco products will become costlier in UP as the state government today decided to hike VAT on them.LUCKNOW: Cigarette smoking and consumption of other tobacco products will become costlier in Uttar Pradesh as the state government today decided to hike Value Added Tax (VAT) on them besides banning sale of loose cigarettes in the market.

"Cigarettes will become costlier as smoking causes health hazards... sometimes the poor, labourers and farmers also face such problems and because of this also the Cabinet has decided to hike VAT rates," Chief Minister Akhilesh Yadav said after a meeting of the state Cabinet, chaired by him.

Besides, it decided to ban sale of loose cigarettes in open market and issue a notification in this regard.

"A decision has been taken to ban sale of loose cigarettes in the market and issue a notification in this regard like Uttrakhand and other governments. Action could be taken against those violating orders," a government official said.

Cabinet has decided to hike VAT on cigarettes from 25 per cent to 40 per cent and on Pan Masala and Gutkha from 30 per cent to 40 per cent.

The hike in the VAT on these products will earn an additional revenue of Rs 200 crore for the state, he said.

The Chief Minister said the Cabinet decided to deploy 500 more ambulances and reconstruct dilapidated tehsil buildings.

The Cabinet has given its assent to providing GPS facility and CCTV cameras in transport department buses and auto rickshaws, Yadav added.

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